California tiered home pricing

Home prices in California's major cities rose slightly in early 2026 but remain below last year's levels due to high mortgage rates, political uncertainty, and increased inventory. Buyers are cautious, waiting for prices to bottom out. Price changes vary by property tier, with low-tier homes more volatile than high-end ones. Market recovery is hindered by sticky prices, search frictions, and heavy homeowner debt, prolonging price stagnation and slowing sales.